Etihad Rail launches Sustainable Finance Framework to support UAE’s green initiatives

Credit: Etihad Rail

Etihad Rail, the developer and operator of the UAE National Rail Network, has announced that it has introduced its Sustainable Finance Framework, a strategic initiative aimed at aligning the company’s future financing with its Environmental, Social and Governance (ESG) strategy. This framework is centred around clean transportation, green building practices, as well as pollution prevention, reflecting the company’s commitment to sustainability.

The framework has been developed with input from industry experts, and financial guidance has been provided by First Abu Dhabi Bank and Standard Chartered Bank, who acted as co-ESG advisors. The framework’s compliance with international standards has been further validated by Det Norske Veritas (DNV) through a Second Party Opinion (SPO).

Etihad Rail’s framework outlines four key components:

• Green Loan and bond principles: Ensures adherence to global sustainability standards
• Use of proceeds: Defines criteria for allocating funds to sustainable projects
• Project evaluation and selection: Implements a process to identify impactful, environmentally beneficial projects
• Management of proceeds and reporting: Guarantees transparency and accountability in fund use.

Ali Tabbal, Chief Financial Officer at Etihad Rail, said: “The introduction of our Sustainable Finance Framework is a testament to Etihad Rail’s commitment to integrate and uphold sustainable practices in all our operations. Through responsible financial practices, we are further underscoring this dedication by driving positive environmental and social impact in the region across the transportation, logistics and infrastructure sectors. This framework is a pivotal element of our broader ESG strategy, directly aligning with the United Nations’ Sustainable Development Goals. It provides a clear roadmap for integrating ESG considerations into investment decisions, empowering companies to generate long-term sustainable value. By doing so, we are not only fostering a transition to a low-carbon, resilient economy but also supporting the UAE’s Net Zero 2050 Strategy and contributing to the nation’s vision for a sustainable future.” 

By embedding environmental risk assessments and promoting transparency, the framework is designed to guide investment decisions, foster collaboration across industries and contribute to a more sustainable financial system in the region.